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Showing content with the highest reputation on 08/29/2019 in all areas

  1. 1 point
    THIS would be such a cool thing to have for ALL OF US! I would LOVE to post my Labor Rate and be able to see those all over the country but PREMIUM or PLATINUM only leads me to believe that this site is more interested in my money than raising the boats (a rising tide lifts all boats!). Sorry, guess I am done here...
  2. 1 point
    Got your attention? Good! Before I start, let’s get something out of the way. Does technician aptitude or attitude affect the productivity of your shop? Absolutely. But this is the exception, not the rule. If your overall production levels are low, that is the sole responsibility of management. Let’s look at a few reasons for low production levels. The first area I want to address is billing. Many hours of labor go unbilled due to not understanding how to charge. This area is most prevalent with testing and inspecting. If your technicians are handed a work order, with no direction and not a clear process of what to do, or when to stop and ask for labor testing fees, there will be a ton of wasted labor hours, never to be recovered again. Next is training. Service advisor and technical training is a key component to high production levels. But let’s not forget in-house training. All policies and procedures must be reviewed often and refined if needed. Your team must follow a process. With no road map, labor dollars are lost. By the way, if you don’t have procedures in place, you need to make this top priority. Every successful organization has a detailed set of workflow guidelines. Let’s look at shop layout. How organized is your shop? Are shop tools and equipment readily accessible? Or do techs tend to wander around looking for the shop scanner or TPMS reset tool. Are stock items such as wiper blades and oil filters fully stocked and cataloged properly? Do technicians have separate access to technical information? Or are techs waiting to use the same computer station? Again, all these things kill labor production, which kills labor dollars. Next up is scheduling. There should be a structured approach to scheduling where the day is balanced with enough opportunity to make profitable sales. Have a process where vehicle history is reviewed before the customer arrives. Any previous service recommendations or notes is any opportunity to make a sale. But the key ingredient is in preparation. A customer that’s scheduled for an oil change may have forgotten that he or she received a recommendation for tires. Informing the customer at the time of scheduling and preparing for the work ahead of time, greatly improves productivity and overall efficiency. Another problem area is with service advisors and their workload. The service advisor, in many situations, handles the front counter, the phone, scheduling, helps with dispatch, part procurement and sales. All these tasks are critical to the daily operations. However, nothing happens in the shop until a sale is made. You need to look at your service staff. Are estimates getting processed quickly and upsells getting back to the technicians in a timely manner? If not, this is another area where production suffers. Carefully analyze your staff and run the numbers. More estimates processed means more sales and higher profits. Adding a service advisor or an assistant may be the missing link in a shop’s production problem. Knowing your numbers is another key component to attaining high production levels. I will refrain from giving you benchmark numbers, since all businesses models are different. With that said, you need to determine your breakeven and establish your labor goal for the week. Then knowing your labor goal, you need to calculate how many labor hours you need per technician. Then, you need to communicate this number to each technician. Having clear expectations and knowing the goals of one’s position is essential for hitting production goals. With regard to the technician’s responsibility, let’s remember one important fact; the technician has control over his or her efficiency. That’s it. If you dispatch a four-hour ticket to a tech, the ability of the tech to meet or beat that time depends on the technician’s skill, experience and training. There are a lot of other factors that influence production, such as the right pay plan and hiring the right people. But perhaps the most important influence is leadership. The shop owner or manager must study and look at the entire operations of the shop. Productivity goals must be established and then a system of monitoring production must be put into place. This includes sales goals, as well. Service advisors and technicians must get continuous feedback on their progress. Improvements in sales and in production, no matter how small, must be celebrated. The bottom line is this: If you’re not happy with your production level, you need to look at every aspect of your company that influences production. Improvements in key areas put technicians in a position to win. When they win, so do you. This story was originally published by Joe Marconi in Ratchet+Wrench on March 1st, 2019
  3. 1 point
    First let me start by saying I am not a shop owner , I am a mechanic who has worked at the same shop for over 2.5 decades and have been close and very involved with all but one of the 5 owners. I don't think that labor rate and car count are the major things people need to be concerned with. Some of the best weeks we have seen are with a lower car count. I think the most important thing is advertising (now a days probably social media etc is the best way). Getting the best mechanics you can and building a team (family) that work together and want to see the business grow and be successful .. Sure you can raise your labor rate or run some coupon to get more cars in the door, but how long will that last? If you raise your rate higher than your surrounding area you will soon lose even more customers, sure at first you may be making more money but for how long? If you get a bunch of guys in there that aren't so great at diagnostics etc. and rape and pillage for every penny they can , sure you will make more money for a while, but for how long? Once your customer base starts catching on you will start to lose customers. Get the best team you can together and make quality repairs at fair prices, even though there is all that social media etc out there still word of mouth is one of the best free advertising you can get. Treat one person fair and honest they may tell their family and friends now you are getting a bigger base that will stay the course as long as you stay the course. That being said you can live like a king to day and be poor tomorrow or you can live a nice happy life time. The choice is yours.
  4. 1 point
    I use a large white board that I use for daily/weekly goals. I keep track for the week on the white board but also fill out a weekly sheet so that I have a hard copy to look at later. I think it would be a good idea for scheduling as well as long as you keep a hard copy or picture of it. (I like to pull up previous weeks and see how they look, etc.)

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